Paychex HR and Payroll Services in Novi, Michigan
Contact Information for Paychex in Novi
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29065 Cabot Drive
Novi, MI, 48377
HR and Payroll Services in Novi
- Ability to pay different types of workers — salaried, hourly, and contract
- U.S.-based support with compliance experts to help you navigate and stay ahead of local, state, and federal regulations, such as Michigan’s Paid Medical Leave Act
- Employee self-service with time and attendance
- A selection of punch-in options, including biometric facial recognition and iris time clock to ensure individual accuracy.
- Health benefit account options — FSA, HRA, HSA and Dependent Care Flexible Spending Account — with access to account specialists
- Easy-to-use online payroll processing with built-in safeguards
- Employee benefit services — retirement, health, dental, and more — to keep your workforce happy
- Comprehensive 401(k) and retirement services plan management that manages all the details from enrollment to plan maintenance
- Business insurance solutions* including vital property and casualty coverage, and workers’ compensation with automatic payroll integration
What Solutions Does Paychex Offer in Novi?
Paychex offers a variety of services in Novi to help businesses in Novi save time by making it easier to pay, manage, and track employees. We understand what Michigan employers and employees want, after all, we’re one too.
Improving payroll accuracy, gaining insights and analytics, as well as empowering employees with options of self-service can help save your business time and money. You can even customize how you see earnings and deductions.
Time and Attendance
Customize how your employees punch into the clock with an array of time and attendance options. Unlock the benefits that come with integrating all employee information onto a single platform.
With Paychex, you can find an affordable retirement plan for your business. Integration with payroll and HR systems helps streamline management and control costs.
Recruiting and Applicant Tracking
Make your hiring process work smarter with recruiting, applicant tracking, screening, and background checks that are more efficient and productive. We also offer a standalone product and service for our non-payroll customers.
Improving your employees’ health and happiness just got easier and more affordable. With an array of benefit services for any-sized business, you can take care of your employees while we take care of tracking eligibility, enrollment, and related legislation.
Find the Right Solution for Your Business in Novi
Whatever the size of your business and whatever your HR or payroll needs may be, you can find the right solution at Paychex.
Compare Our Payroll Services
Paychex Flex® Essentials
Quickly sign up and get started with a fully online, custom payroll solution.
- Five-star mobile app
- Payroll tax calculation and filing
- U.S. based support 24x7x365
- Direct deposit and on-site check printing
Paychex Flex® Select
Payroll and HR support for Novi businesses of every size. This smart solution will transform necessary business functions into actions that can help your business grow.
- Conveniently submit payroll online or over the phone
- Flexible pay options for your employees
- Reliable support for payroll tax and labor compliance issues
- Work with a dedicated payroll specialist for a single point-of-contact and a trusted relationship
Paychex Flex® Pro
Get your business ready for growth by connecting payroll and HR for easier management.
- Full payroll & tax service
- Screen job candidates
- Onboard new employees
- 24x7x365 support from U.S. based representatives
What Are the Advantages of Outsourcing Payroll and HR Services to Paychex?
- World’s Most Ethical Companies®, 13-time honoree.
- An all-in-one HR, payroll, time and attendance, and benefits platform for flexible support where and when you need it.
- Reports and analytics for more informed decisions.
Additional HR Resources for Businesses in Novi
How Employee Performance Reviews Have Changed: 4 Steps To Do It Right
6 min. Read
Employee performance reviews can be crucial to an organization's ability to build relationships and motivate and enhance the performance of its workforce. When done well, a review can influence an employee's sense of loyalty and desire to succeed.
The post-pandemic work models include in-office employees, remote employees, and a combination – or hybrid – model. This new blend of working arrangements changes the employee experience and how managers engage and oversee employees on a 1-on-1 basis to manage their performance.
This presentation will define performance management and outline how it has changed in a post-pandemic operating environment. We will share seven best practices to improve goal setting, outline four practical ways to manage employee performance reviews, and highlight how up upskilling and reskilling can help transform your workforce in a tight labor market. It will be supported by research and client stories.
Hiring Interns: A Guide on How to Recruit and Select Interns
6 min. Read
Establishing a small business internship program can offer many potential benefits. Often college students or recent graduates can bring fresh perspectives, while training interns offers a unique management opportunity for current employees. But bringing on an intern for your business, like any other process, requires careful consideration. Let's take a look at not only how to find interns and potentially add to your future talent pool, but also identify potential internship requirements and best practices to be mindful of before starting such a program.
Determine Timeline, Budget, and Team Needs
A business may initially consider bringing on interns for a specific upcoming project or initiative. In such cases, it's a good idea to outline the project's scope and requirements, identify necessary tasks, and which skills are required. For example, a summer-long technical project may warrant bringing on interns who are computer-savvy and demonstrate strong attention to detail.
Another consideration is your budget, if any, for bringing on interns. Some internships should be paid while others may be unpaid, such as students receiving college credit in lieu of monetary compensation. There are many state and/or federal wage and hour rules to consider if you decide to bring interns into your organization. At the federal level, there are multiple factors that determine whether interns in the for-profit sector may be paid or unpaid by focusing on the primary beneficiary of the relationship. These factors include:
- Whether the internship provides training similar to what the intern would receive in an educational institution;
- Whether the internship accommodates the intern's academic commitment(s) and calendar; and
- The understanding of all parties concerning compensation, among other criteria.
When this analysis indicates that an intern would also be an employee, the intern is entitled to minimum wage and overtime pay under the Fair Labor Standards Act (FLSA). Additional state and local laws could provide additional clarification on internships.
In instances where interns are paid, these wages should be factored into your budget for an internship program. This will also require your interns to complete any necessary new-hire paperwork, such as Form I-9, Form W-4, and any other employment forms required before they begin work.
You may want to consult with an HR professional or legal counsel to ensure your internship programs and supporting agreements comply with federal, state, and local wage and hour laws.
Connect with Local Colleges
Once you've outlined business needs for bringing on additional help, where can you find interns? Colleges and educational institutions are great places to connect with students who are ready to get some hands-on work experience. Cultivate relationships with local colleges and universities by reaching out to the institutions' career development centers, advertising internship openings on their job boards, and attending job fairs.
Communicate Your Internship Opportunity to Students
Similar to recruiting an employee, reaching out to a potential intern requires communicating about opportunities via thorough descriptions. This is where you can outline responsibilities, the type of work they will take on, timeframes (e.g., May-September during a school's summer break), whether the internship is paid, and other pertinent information. Much like crafting a job description for an employee, make sure you can answer questions such as:
- What are the goals of the internship and what specific duties and functions will the intern take on to achieve them?
- Is there any previous skill set or current program of study the person needs to succeed in the role and add value?
- Where will the person work, and during what hours?
- Which team will the intern support?
- What tools, software, or technology resources will the intern be provided with to achieve the goals of the internship?
- Is there the opportunity to bring an intern on as an employee following the completion of their internship?
The more detailed your description, the better you can communicate your needs and find the right intern. Otherwise, unclear expectations can lead to interns bouncing back and forth between teams, sitting idly with nothing to do, and developing a less-than-favorable impression of your business.
Once you have a solid description for an internship opening, post the listing with local colleges, as well as on websites that post about internship opportunities, career pages, and social networks. Encourage current employees to also reach out to their alma maters to help spread the word.
Start the Intern Selection Process
A thorough vetting process, much like hiring a full-time employee, is crucial to selecting an intern. The intern selection process may involve initial phone screenings to weed out unqualified applicants, in-person interviews to assess their capabilities, and even a meet-and-greet with the team to get a sense of future dynamics. Anyone involved in the interviewing and selection process should be mindful of the fact that this person likely has limited (or zero) job experience, so questions should reflect this. They may include:
- What do you hope to learn as an intern?
- What made you interested in your current field of study?
- What are your future career aspirations?
- Can you talk about a recent school project you worked on?
Anyone involved in the interview process should also be mindful of questions to avoid, including anything related to an individual's race, ethnicity, religion, or gender; citizenship status or place of birth; any physical or mental disability; or whether the candidate is pregnant.
Make an Offer
Just as you would extend an offer letter to a potential employee, make an offer in writing to an intern, whether it's paid or unpaid. Details to consider including in the offer letter:
- The name and location of the business
- The internship's start and end dates
- The amount of compensation you are offering if it's a paid internship (or alternatively clearly stating that the position is unpaid)
- The intern supervisor's name
- The deadline for accepting the internship
Do Interns Get Paid?
Many internships offer some form of compensation, but unpaid internships may exist in situations where the intern is the "primary beneficiary" of the agreement, per the DOL's primary beneficiary test. State and local laws should also be taken into consideration when determining whether an internship is paid or unpaid.
Do Interns Get Benefits?
While interns are generally not eligible for most company benefits, those who qualify as employees under the FLSA are typically eligible to participate in company benefit plans. As of May 2017, organizations with 50 or more employees are required to offer health benefits to any individual working 30 or more hours per week once they have satisfied a waiting period. The law doesn't specifically outline guidance in regard to interns, but if they work 30 or more hours per week and have satisfied the waiting period, interns must be offered coverage. Make sure to review your company policies prior to bringing on any interns.
What's the Difference Between Intern vs. Employee?
As stated above, there are federal and state guidelines that help organizations classify an intern vs. employee. But at the basis of an internship policy, an internship's purpose is to provide a student or recent graduate with training for a specific period of time similar to what would be given to them in an educational setting. The experience is for the benefit of the intern. On the other hand, an employee is hired to perform specific tasks for the benefit of their employer in exchange for compensation and benefits.
Do Internships Always Lead to Jobs?
Not necessarily. Internships are a great way for students to build connections within a company, demonstrate their abilities, and generally get their foot in the door. But there is no guarantee that an intern will receive a job offer.
Can a Company Revoke an Internship Offer?
An employer has the right to rescind an internship offer for almost any reason, unless it's based on discriminatory factors such as gender, race, etc. If the individual fails a background check or drug test, this could also lead to a revoked internship offer as part of the company hiring policy.
Can an Intern Get Fired?
It's possible for internships to end prematurely, but how businesses choose to handle subpar intern performance can vary. Some businesses will simply wait out the duration of the internship and wish the student well at the end of it. Others may choose to dismiss an intern before their last day. That said, internships are learning experiences, and it's important to provide opportunities for interns to learn from their mistakes. However, actions such as continually showing up late (or not at all), stealing or committing illegal acts, or exhibiting inappropriate behavior may all be grounds for immediate dismissal.
How Long is an Internship?
Internships last for a specific period of time, typically anywhere between a few months to half a year. An internship that lasts for a short duration, such as during a summer break, can be beneficial if there's a project that will have a definite end date. At the same time, a longer internship offers more time for training and additional opportunities to further develop an intern's skills.
Get the Most from Your Internship Program
An effective internship program can help students and recent graduates see what it's like to work at your company, explore different departments, and gain valuable work experience. And with today's competitive hiring landscape, interns can offer a helping hand to over-capacity departments, and be a great strategy for building a solid candidate pool for future job openings.
An owner's draw is a way for a business owner to withdraw money from the business for personal use. Typically, owners will use this method for paying themselves instead of taking a regular salary, although an owner's draw can also be taken in addition to receiving a regular salary from the business.
When the owner receives a salary, the amount must be consistent from workweek to workweek, and taxes must be withheld from the salary as they are for any other employee. Depending on the type of business structure you choose, you may instead opt for an owner's draw, which allows you to receive income when the company is doing well without jeopardizing the solvency of the business.
How Does an Owner's Draw Work?
When you own a company through a sole proprietorship or partnership, you don't have to answer to stakeholders, and you can run the business however you (and your partner, if applicable) decide. This includes when to take profits out of the business and how much to take. As an owner, you can take owner distributions — and tap into the business profits for your personal gain — whenever you deem appropriate.
If you are self-employed or a sole proprietor, you can take an owner's draw whenever you need funds and the business has them available. Keep in mind, however, that taking too much from the business can cause cash flow problems in the future. You'll also need to keep track of how much you pull from the business each year, so you can document any cash received on your personal income tax return.
In a partnership, each partner is personally taxed on half of the business profits. If one owner repeatedly takes more than their half of the profits through owner's draws, this is likely to negatively affect the other partner and cause friction in the business. However, as long as both partners agree, owner's draws can be taken at any time and in any amount inside a partnership as well.
For other business types, owner's draws are not as straightforward, and they may not be available at all.
Depending on how the Limited Liability Company (LLC) is structured, owners may take a draw in some cases. For example, single-member LLCs, also referred to as SMLLCs, generally do not have any shareholders or other owners who would be affected when profits are removed, so owner's draws are allowed in SMLLCs in most states. Rules regarding LLCs are state-specific, so it's best to review your state's laws if you are a member in an LLC.
In an S Corporation (S Corp), the business elects to pass any financial gains or losses through the business and to their owners/shareholders for tax purposes. Since an S Corp is structured as a corporation (which is a legal entity in its own right), the profits belong to the corporation and owner's draws are not available to owners of an S Corp. Owners drawing funds can receive non-taxable distributions on a limited basis, but income must generally be structured through a traditional salary as a W-2 employee.
For tax purposes, a C Corporation (C Corp) is taxed separately from any owners or shareholders. Since C Corps are also a corporation (and therefore a separate legal entity), owner's draws are also not available. While owners can take a distribution, any money paid out in distributions through C Corps are subject to double taxation — once to the corporation as revenue and again to the owner as dividends received.
What Is the Difference Between an Owner Draw vs Distribution?
Essentially, an owner's draw and a distribution represent the same concept. In both cases, an owner is given money for personal use that was generated by the business. However, the terminology varies based on the business structure to coincide with IRS tax laws. In short, "owner's draw" is the term used for business structures that have individual or split ownership (as in a sole proprietorship or partnership), while "distribution" is the term used for cash distributions made to owners of a corporation.
Owner’s Draw vs. Salary
While it may sound ideal to have easy access to business funds whenever you choose, taking an owner's draw isn't the only way to get income from your business. Owners can also opt to take a regular salary instead of or in addition to an owners draw, and each method comes with certain tax implications for both the owner and the business.
The Owner's Draw Method
When taking an owner's draw, the business cuts a check to the owner for the full amount of the draw. No taxes are withheld from the check since an owner's draw is considered a removal of profits and not personal income.
- Pros: Using the owner's draw method can help you, as an owner, keep funds in your business during times when your business may not be able to afford paying yourself a salary. You can also reap the rewards and withdraw higher amounts when business performance is strong.
- Cons: Since your draws are not taxed, taking frequent draws can have significant tax implications on your personal income tax return, and you may be subject to quarterly estimates or self-employment taxes.
The Salary Method
With the salary method, the business owner is treated as any other W-2 employee and receives a regular salary. Once this salary level is set, it must be paid consistently with the appropriate amount of taxes withheld on both the employee (in this case, the owner) and the business side.
- Pros: Using the salary method gives you, as an owner, a consistent level of income to meet your personal needs so you can focus on growing your business. Taxes are deducted from your paycheck through the same calculations as if you were an employee with any other organization, so there are unlikely to be surprises at tax time.
- Cons: Salaries aren't as flexible as owner's draws, and you can't opt to skip paychecks if your company falls on hard times. Giving yourself too high of a salary can also raise red flags with the IRS or future stakeholders.
How Is Owner's Draw Calculated?
According to the IRS, compensation to owners (regardless if it's an owner's draw or salary) must be reasonable. This can mean different things to different people, but essentially you should take out what is needed to cover your expenses and what your business can afford.
To calculate the amount of your owner's draw, you should consider a few factors:
- How much do you need to cover your expenses?
- How much available cash does your business currently have?
- Are there any upcoming business expenses that you will need to cover soon?
- What are your business cash flow patterns?
- Will your planned income be able to cover your business expenses after the owner's draw is taken out?
- If applicable, what does your partner think is fair for both of you?
After considering those factors, you can arrive at a reasonable amount to withdraw without jeopardizing the stability of your business.
How Often Can You Take an Owner's Draw?
If you are taking a draw from your business as a sole proprietor, you can draw as many times as desired, as long as funds are available. The IRS does not limit the number or frequency of owner's draws on partnerships either, but you should consult with your partner to be in alignment with any funds extracted from the business.
How Does an Owner's Draw Get Taxed?
The specific tax implications for an owner's draw depend on the amount received, the business structure, and any state tax rules that may apply. In most cases, the taxes on an owner’s draw are not due from the business, but instead the income is reported on the owner's personal tax return. For many individuals, an owner’s draw is classified as income and may be subject to federal, state, local, and self-employment taxes, so it's important to plan ahead before filing taxes.
Payments by Business Entity Type
Depending on the structure of your business, certain payment methods are more ideal when factoring in flexibility, IRS regulations, and tax implications.
- Sole proprietorship: It's best to start out using the draw method, especially when your sole proprietorship is in its first few years of operation. Once your business is more established with consistent revenues, you can consider switching to the salary method or taking a combination of salary and owner's draws as your cash flow allows.
- Partnership: Using the draw method, especially for a younger partnership, can help ensure that each partner is receiving a fair share of the business profits. Using the salary method can be challenging since the partnership would need to support two salaries, not just one.
- LLC: For single member LLCs, the draw method can help maintain control over business profits. Larger LLCs or LLCs in states that have excessive tax regulations may opt for the salary method.
- Not-for-profit: Since NFPs are not designed to generate a profit, owner's draws can raise red flags to the IRS. Salary method is best to track all labor costs incurred by the company.
- S Corp: Owners must take income through a salary. Since the corporation is a separate legal entity, owners can only take distributions, not owner's draws; distributions must be limited in scope and not in lieu of a regular salary.
- C Corp: Owners must take income through a salary. Since the corporation is a separate legal entity, owners can only take distributions. In addition, those distributions are taxable to the owners, which can create a double-taxation scenario.
How Much Should You Pay Yourself as a Business Owner?
When paying yourself as a business owner, generating a reasonable income while still maintaining the health of your business is possible. While there is more than one way to withdraw income, you'll want to consider the pros and cons of the salary vs. draw method before pulling any money from your business. It's also important to track and document any withdrawals correctly so there are no unintended tax consequences or penalties. For additional assistance with payroll tax services, connect with the experts at Paychex.